Investing.com – The pound extended earlier losses against the U.S. dollar on Monday, after official data showed that the service sector in the U.K. lost momentum in June as buisness activity fell to its lowest level in ten months.
GBP/USD hit 1.5099 during European afternoon trade, a 2-day low; the pair subsequently consolidated at 1.511, shedding 0.62%.
Cable was likely to find short-term support at 1.5011, the low of June 29 and resistance at 1.5344, the high of April 29.
Earlier in the day, official data showed that the U.K.'s services PMI fell more than expected in June.
In a report, the market research group, Markit said the seasonally adjusted Markit/CIPS Business Activity Index registered 54.4 in June, down from May’s 55.4.
Analysts had expected a result of 55.1 in June.
Any level above 50 on the index indicates expansion in the industry, below 50 indicated contraction.
Commenting on the report Paul Smith, senior economist at Markit said, "Confidence declined to the greatest extent in fourteen years of data collection in reaction to the government’s austere emergency budget, with concern expressed that the fiscal tightening could push the country back into recession."
The pound was also down against the euro, with EUR/GBP gaining 0.31% to hit 0.8287.
Meanwhile, markets in the U.S. were closed for the Independence Day bank holiday and were due to re-open Tuesday.
GBP/USD hit 1.5099 during European afternoon trade, a 2-day low; the pair subsequently consolidated at 1.511, shedding 0.62%.
Cable was likely to find short-term support at 1.5011, the low of June 29 and resistance at 1.5344, the high of April 29.
Earlier in the day, official data showed that the U.K.'s services PMI fell more than expected in June.
In a report, the market research group, Markit said the seasonally adjusted Markit/CIPS Business Activity Index registered 54.4 in June, down from May’s 55.4.
Analysts had expected a result of 55.1 in June.
Any level above 50 on the index indicates expansion in the industry, below 50 indicated contraction.
Commenting on the report Paul Smith, senior economist at Markit said, "Confidence declined to the greatest extent in fourteen years of data collection in reaction to the government’s austere emergency budget, with concern expressed that the fiscal tightening could push the country back into recession."
The pound was also down against the euro, with EUR/GBP gaining 0.31% to hit 0.8287.
Meanwhile, markets in the U.S. were closed for the Independence Day bank holiday and were due to re-open Tuesday.